BUYING YOUR FIRST HOME

 

First Home Buyers Frequently Asked Questions

First Home Buyers Grant

The FHOG scheme is a national scheme funded by the Federal Government, but administered through each state or territory Revenue Office.

In some states additional bonuses may be available.

Please call First Choice Mortgage Brokers to discuss your opportunities and for assistance in accessing the FHOG.

Please note that each state has different maximum property prices that you can consider before the first home owners grant isn’t applicable.

Please note that each state has different bonus concessions and grants if you would like to build a new home.
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How do I know if I am eligible for the First Home Owner Grant?

As a basic rule, you are eligible if you are an Australian or New Zealand citizen or permanent resident, buying or building your first home, with the intention of occupying it as your principle place of residence within 12 months of the settlement and living in it continuously for at least 6 months.

Please note that if you are buying the property in conjunction with other people, they must also meet the first home buyers criteria for the grant to be eligible.

How do I apply for the grant?

Our team at First Choice Mortgage Brokers will complete the application on your behalf. Usually the first home owners grant application is submitted whilst the loan is proceeding so that the funds are available for settlement of your home loan. In some cases the grant can be submitted post settlement and the funds deposited into your bank account. We will assist you with the application and submit the forms on your behalf, this is part of our ongoing commitment to assisting you in purchasing your first home.

How much can I borrow?

How much you can borrow, also known as your borrowing capacity, will depend on how much of a deposit you have, your current income and what expense commitments you have.

It will also vary from lender to lender. First Choice Mortgage Brokers will give you a complete individual assessment when we discuss your options.

How much will I need to save for a deposit?

The deposit required depends largely on the type of home loan and, of course, the lender you select.

As a general rule, if you are planning to live in the property then you require to have generally 5-7% of the purchase price as a deposit.

How much money will I need to set aside for stamp duty?

Stamp duty is a tax levied on the purchase of a property. It is calculated according to the purchase price of the property and the state or territory of the property location.

Based of your situation, one of our mortgage consultant will calculate the stamp duty fee that may apply.

What other expenses will I need to pay besides mortgage & stamp duties?

You may have to consider additional funds for the following:

  • Building and pest reports
  • Valuation fees
  • Lenders mortgage insurance (LMI)
  • Solicitors fees
  • Insurances
  • Utility connection fees – phone/gas/electricity
  • Council and water rates
  • Removalist costs

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) premiums are payable by the borrower when the amount borrowed is above a certain percentage of the lender’s valuation of the property.

Majority of lenders will allow you to include the LMI premium to your home loan amount and others may require you to pay it up front. It’s important to note that the LMI does not protect you in the event that you are not able to make your mortgage repayments; LMI protects the lender from any losses resulting from late or unpaid loan repayments.

Contact First Choice Mortgage Brokers to find out more about lenders mortgage insurance.

How do I choose which home is best for me?

The Australian Mortgage market can be a perplexing web of options, home loan interest rates, lenders and products. Here at First Choice Mortgage Brokers we know it can be a difficult decision for a first home buyer to navigate through the various decisions on your own.

Our specialist mortgage team are here to assist you throughout the entire home loan process.

What are the steps in the home loan approval process?

Please find the following basic guide for the home loan process – please note that the stages might vary slightly between different home loan lenders:

Step 1: Speak with a First Choice Mortgage Broker who will consider your financial situation and provide you with a home loan that suits your individual needs

Step 2: Our home loan consultant will collect your supporting documents and take your application for the home loan.

Step 3: Your home loan will be submitted to the lender we agree on for their consideration.

Step 4: If the lender requires no additional information the loan will be pre-approved and a valuation will be ordered on your new purchase property

Step 5: Valuation returns and the lender accepts the property as security, your loan is submitted for formal approval

Step 6: Your loan is formally approved! We provide you with an approval letter so that you can exchange on your new property. We also assist you with your first home buyers grant and submit this to the lender on your behalf

Step 7: Mortgage contracts are sent to you in the mail – you sign them and send them back to the lender

Step 8: Your documents are checked, the lender books in a settlement date with your solicitor and your loan settles

What Should I Do Now?

You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455

TESTIMONIALS

"I would like to Thankyou and your staff very much over the last few months. The ladies have been pretty good dealing with the Commonwealth Bank and getting back to me, as it has been very frustrating at times and they have calmed me down. I have sent an email ..."

− From: Stella Miliatis

"Hahaha!! They are just the best to deal with. I am so glad I was given your companies number!With Thanks Angel Evans Customer Service "

− From: Angel Evans

"Tony and Anna, Cathryn and I would like to pass on our sincere thanks for all of your help during the process of purchasing our first home. From the start of our dealings, the first phone call that I received from Tony, I felt comfortable in dealing with you as the manner .."

− From: Leslie Elms

"Dear Tony Forgot to say thank you for the gift that you sent us. the timing was spot on as we had just moved in physically on the day We seemed to have fit the essentials into to our finances so thankfully we won't need to think about a further loan. Thank you ..."

− From: Simon Airey

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− From: Elisabeth Crawford

"Hi Barbara, Tony, Taryn and Kylie We had a lovely hamper arrive on our doorstep today! What a nice surprise – and a lovely gesture. Love it – can’t wait to test out the champagne and choccies. Thank you for the gift – pleasure doing business with you guys – will ..."

− From: Sharon and Darren Quandt

"I spoke to Tony Bice ( mortgage consultant) about getting a mortgage for my new home as I was having trouble securing a loan due to my break up of my marriage. I was referred to CLS Investment Services by a friend. It was the best phone call I have ..."

− From: Suzanne Allen

"We cant tell you enough how happy we are to have dealt with you and your staff, Especially Lyndall . Thank you so much Extremely happy customer Kerry and Gary Foulis. "

− From: Kerry and Gary Foulis

"G'day Tony, Good to talk to you yesterday and thanks for your help with the new House. Tarryn, Lyndal and yourself have been a pleasure to deal with. Can you please fire through the breakdown of weekly cost for each of the four areas you outline below and which institution they would be with. ..."

− From: Neil Masters

"Dear Tony Thank you for your time today on the phone and the detailed discussion of our home loan status. Further to our conversation, Tim & I would like to pass on our congratulations to Barbara Mourga, on her extremely timely and professional help with our particular 'scenario'. We have bought (& ..."

− From: Melissa & Tim

"Hi Tony I just wanted to thank you very much for all your help...I picked up the keys this afternoon, very happy I have my own home! Kind Regards Christine Smits"

− From: Christine Smits

"Hi Tony After much thought we've decided that we're better off selling the flat as we wouldnt be able to keep it and buy another place so rather than keep putting money into something we're going to sell in 12 months, best to do it now and add to the equity ..."

− From: Bridie Read

"Hi Tony and team, Although belated, (I have been absent for the past 3 weeks) I would like to pass on our gratitude for the assistance you have provided with the purchace of our home. The gift basket was a lovely touch, and indicative of the personal customer service we have ..."

− From: Brad Pearson

"Hi there I know this has come a little late but we wanted to thank everyone there so much for all of the help you were able to offer us during our home purchase. We are loving our new home and were really thrilled that everything worked out ok with the ..."

− From: Avril and Mike

"Haha! Hmmm, marginally better, I certainly feel reassured that we technically only have one last hurdle to jump. Seeing the words 'not a guarantee' only gave me slight reason to stress :) You've been wonderful, I really appreciate your patience and understanding. Not many people would be prepared to put up ."

− From: Kelly Pearson

"Hi Tony, My apologies for not getting back to you earlier this week as promissed. Danijela and I went through the life insurance documents and we realised that we need to have a proper chat with either yourself or Lyndal again regarding this matter. We made a list of questions that we need some ..."

− From: Serg and Daniella

"Dear Tony, Lyndal and Anna, Dane and I got home from work yesterday to find a little hamper from you, that was a lovely surprise - thank you so much! Thank you to your team for finding us a great homeloan and also sorting out our insurance. Your team has been excellent ..."

− From: Rhianna Murray

"Hi Stress Attack... How is your heart beat now? So happy to hear some good news for you... I was quietly confident.... but we dont cheer until it is in writing. Still have to wait for a good val in SA – great news they aren’t doing a val on NSW – shows ..."

− From: Barb bmourga@bigpond.com

"Hi Tony and Taryn I received today a lovely congratulatory gift from both of you, which I thank you both for very much. Your excellence in professionalism, communication and assistance all the way through, with Taryn continually keeping me posted, alleviating my anxiety, and assisting to ensure that all was done in possibly one ..."

− From: Cheryl Bigini

"Thanks Tony, I appreciate all your help. J You have been fantastic, not sure what we would do without your help & advice. Kara Spokes | Sales Manager Retail | Home Magazine "

− From: Kara

"Hi Tony I really sorry I haven't written sooner but Ive been flat out working and renovating I haven't had time to scratch myself.I just wanted to say I really appreciate everything lyndal, anna and yourself did in regards to my loan and my finance protection. i was extremely happy with the service you provided "

− From: Michael Richards